Trusted Franchisee Attorney
A franchised business is distinct from other business opportunities due to its unique structure and the relationship between the franchisor and franchisee. Our attorneys work hard to assist franchisees at every stage by leveraging their business acumen, legal skill, and knowledge of the franchise industry to offer strategic and personalized legal solutions. From initial review of the franchise disclosure document to negotiating an exit strategy, we provide the business legal support your business needs to succeed.
A Franchisee Attorney Will Help Evaluate The Franchise Opportunity
Franchise opportunities are sold in the United States through disclosure of a lengthy legal document known as the Franchise Disclosure Document (“FDD”). The development and disclosure of the FDD is regulated by federal franchise law through the Federal Trade Commission. State laws supplement federal franchise laws to various degrees.
The FDD is intended to be written in plain english, but they are long complex documents with legal and business disclosures. Receiving and interpreting the FDD is an overwhelming process for most entrepreneurs. The vast majority of disclosure documents are several hundred pages long and the sheer volume can make it difficult to spot the important business and legal issues.
Utilizing a franchisee attorney will help you understand the business and legal terms of any FDD, in our case, for a reasonable fixed legal fee. The comprehensive review and support provided by a franchisee attorney will empower you with the knowledge and tools you need to evaluate the franchise system, negotiate the right deal, and plan for success when launching a franchise business.
A franchisee attorney is an indispensable part of buying a franchised business, and will likely pay short-term and long-term dividends. One advantage of our law firm is that our attorneys have a broad knowledge base formed from actual experience because they also serve as franchisor lawyers.
Reviewing the FDD and Signing the Franchise Agreement
The FDD is a legal document. This documents is intended to educate buyers about the franchise business through a series of disclosures. They are supposed to be clear and concise, but the reality is that they are typically complex legal documents. The framework for each FDD is set forth by the Federal Trade Commission’s Franchise Rule.
Every FDD contains 23 separate areas of disclosures (referred to as “Items”), which are required across the United States pursuant to federal franchise law. These 23 items include the standard form franchise agreement, along with any other contracts that a prospective franchisee may be required to sign.
Why Buy a Franchise?
The right franchise opportunity provides a pre-packaged, ready-to-implement business, with a proven formula for success. Purchasing a franchise simplifies the startup process by providing a clear blueprint, ongoing support, and a consistent model across multiple locations. In essence, a great franchise presents a turn-key solution.
Working with a franchisee attorney is essential because franchising is a unique business model with unique regulatory and legal considerations. The franchisee attorney know-how is necessary to understand the what, how, when, and why needed to deliver franchisee legal support. Our franchisee attorneys have spent thousands of hours learning the intricacies of franchisee law and they put this knowledge to use.
At Waldrop and Colvin, our process starts with a review of the FDD and franchisee agreement. After a franchisee attorney reviews the FDD, they prepare and provide a comprehensive report, recommend legal changes to the franchise agreement itself, and provide unlimited consultations with the business lead on the franchise opportunity.
To expedite the process, our franchisee attorney will even draft an addendum to incorporate any agreed upon changes to the franchise agreement.
We support franchisees through the process by providing business minded legal advice for a reasonable fixed fee.
Launching & Operating the Franchise Business
Franchisee attorneys excel at understanding the intricacies of franchise law, but our business minded attorneys excel at supporting business owners and are well-suited to provide ongoing transactional support to franchisees as they plan for success. We are more than just franchisee attorneys. We are business minded attorneys with specialized knowledge in providing transactional support. Common legal services include:
Business Formation
At Waldrop & Colvin, we encourage our clients to create a legal entity for operation of the franchised business. We help by comparing the various legal entity structures, creating the legal entity, and drafting the formation and governing documents.
Contract Management
Our attorneys help entrepreneurs manage contracts with customers, vendors, and the franchisor. This includes drafting contracts to clearly outline terms, conditions, and obligations, tailoring the document to client’s specific needs. We also review contracts to identify potential risks and advise on negotiating favorable terms.
Dispute Resolution
Our attorneys help with all aspects of dispute resolution for Virginia based franchisees, from pre-litigation, alternative dispute resolution, to litigation. We have your back.
Commercial Lease Negotiation
The commercial lease process typically starts with a template lease agreement prepared by the landlord. The terms are often one-side and thats not in favor of the tenant. Negotiating a fair and balanced lease requires a partnership between business and legal.
Employee Relations
Attorneys play a vital role in managing employee relations by providing legal guidance and expertise to employers. Legal support includes policies and handbooks, offers and contracts, compliance, and much more.
Franchisee attorneys also help when its time to sell your franchised business
One of the reasons many entrepreneurs elect to proceed with a franchise brand is that it may be worth more than a comparable independent business when it comes time to exit. Executing on an exit strategy involves a strategic and well-organized process. It begins with clearly defining objectives, preparing the business for transition, and determining its fair market value.
The selection of an appropriate exit strategy, whether through a sale, succession, merger, or other means, should align with predefined goals. Legal and regulatory compliance, effective communication with stakeholders, and negotiation and execution of agreements are critical steps. Financial planning for post-exit, addressing employee transitions, and ongoing monitoring and adjustments contribute to a successful execution. The process concludes with the finalization of the deal, encompassing asset transfers, settlement of obligations, and legal and financial transactions.
A comprehensive approach, guided by an experienced franchisee attorney, aims to achieve a smooth transition while optimizing value and mitigating risks.
Schedule a free consultation with a franchisee attorney today! Or if you prefer, call or email franchise attorney Derek Colvin. Please be sure to mention our special offer in your email.
